promotion and advertising paid by the agent. Which of the following statements regarding ethics is TRUE? The Recovery Fund is funded by a $10 fee paid with every brokers or salesmans original license application. Some brokers charge a small fee every time someone clicks through to the lenders website. Ads in an outside column will generate more interest than ads in an inside column. visual inspections. greater responsibility. prior to qualifying the buyer. Brokers have liability to commission salespeople as to workers compensation. Brokers have liability to commission salespeople as to - workers compensation. both 30-day month and 360-day year. every listing. information about your firm. The commission may be based on a flat fee arrangement, or (more commonly) as a percentage of the revenue generated. You can find out how things are done in your office by studying your office procedure manual. a defeasance clause. I recently got my brokers license, but I dont sponsor any agents. If the person receiving the commission is not an employee, then that person considers the commission to be revenue, and may pay taxes if there is a resulting profit. the property has earthquake weakness if it was built before 1960. Your answer is correct. Applicability of the legal principles discussed in this material may differ substantially in individual situations. an unknown spousal interest. Only required for exclusive listings.Page 264, A listing where the licensee is subject to disciplinary action for demanding a fee would be. particular subdivision. love of family. Very rarely. ), The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to. Browse over 1 million classes created by top students, professors, publishers, and experts. any of these. $5,685.00. all of these. neither a counteroffer really rejects the offer nor once rejected, an offer cannot be accepted. Brokers have liability to commission salespeople as to workers compensations The California Act that prohibits discrimination by all California businesses is the Unruh Act Redlining is prohibited by the The Holden Act A selling agent must comply with agency disclosures to the buyer before the buyer executes an offer ad will cover every major feature of a house. Which of the following would constitute an acceptance? Increased income both that the property must have been held for productive use in a trade or business or for investment purposes and that the exchange property must be of like-kind. What would be a word or words to use in a listing presentation that denotes a benefit? reading the information on the back of your real estate license. An agent is required to disclose to a buyer that: the property has earthquake weakness if it was built before 1960. there was a death by murder or suicide on the property more than 3 years ago. recommend to the owner to ignore it. 1 to 4 residential units only. (Page 486), In making an appointment to present an offer, the agent should. retain top producers. newly acquired property to have a maximum basic tax levy of 1%. None of these. Agency relationships require an exchange of consideration to be formed. Independent Contractor Status Frequently Asked Questions primarily for 1 to 4 residential units. all of these. A sample of 100 is used and the population standard deviation is 12 . Brokers have liability to commission salespeople as to - workers compensation. Three years after the purchase, the property flooded and the buyers then learned that the property had previously flooded. A broker who is the designated broker for a business entity is subject to this rule whether or not the business entity sponsors salespeople. the firms logo. restrictions on e-mail solicitations. the buyer can amend the escrow instructions. Thats selling and listing opportunities is where commissions come from.page 40, One of the requirements for a real estate salesperson to be regarded as an independent contractor by the IRS is that the. when property is shown, follow the agent closely and provide information to the prospective buyers. the Truth in Lending Act. legal description from the address. two months rent. Brokers have liability to their commissioned salespersons in respect to. All of these. upon delivery of the sellers acceptance. a particular mobile home park. - Both A real estate agent An example of a closed-ended question, would be, Would you use this room as a bedroom or a den? Whose bedroom would this be? What do you think of the floor plan? Isnt this a large living room?, Can be answered with a yes or no.Page 428, In meeting a buyers objections the agent should consider. Fair Housing Month signifies a recommitment to advancing equitable opportunities and expanding homeownership. A purchaser of a $100,000 single-family home for her family refuses to close escrow after making a $40,000 deposit. Which of the following statements regarding mobile home sales is TRUE? For listing agents, selling real estate involves three separate sales. (Page 411), When showing a property to a prospective buyer, the agent should. (Page 388). asking every prospect to recommend another prospect. lack of liquidity. maximum that can be charged for the loan. elect, disclose, confirm. Brokers have liability to commission salespeople as to: The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to: All of the following are all examples of abstract goals EXCEPT: Which of the following statements regarding the use of goal-setting is FALSE. A mortgage company sponsoring an educational event to promote its services can do so as long as the cost associated with the event doesnt cover any of the agents other expenses they would otherwise have to pay, such as the cost of the CE credit. 60% of $5,685 = $3,411.page 317, Advantages of holding open houses include. What are the advantages of a good time-management program? Disclose as soon as possible, confirm with offer.page 119-120. a fixer-upper. What is legal but unethical now might be illegal tomorrow. Which of the following statements regarding the truth-in-lending law is TRUE? loan index. It has also been used to fund the filing of analyses and comments before governmental agencies. The best heading for a classified ad on a home would be. Which of the following is NOT one of the three? buyers only. inheritance taxes. Similar properties sold within the past 2 years, Similar properties sold within the past 3 months, A listing presentation manual should include. These are suggestions not necessarily legal duties.page 66-67. The owner should understand the brokers advertising policy, including the fact that a(n): display ad should be used to impress home-seekers. rent skimming. Neither buyer nor seller may unilaterally modify the escrow instructions. The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to neither motivate salespeople nor retain top producers. 39 years for the property life. Residential real estate uses 27.5 years. If you are going to be buying a new car for real estate sales, you should consider - a full-sized, fourdoor car for easy entrance and exit. Their adjusted cost basis is $80,000. - Once set, goals blockbusting. 360-day year. interest. one months rent. a listing where the agent was not authorized to accept a deposit. influential people in the community. The sellers MOST common objection to an offer is. Both Primary financing refers to loans made directly by the lender to the borrower and Secondary financing refers to the resale of existing loans. neither 30-day month nor 360-day year. The Civil Rights Act of 1968 prohibited discrimination in housing based on national original, race, religion, and color. amount over the index the lender charges as interest. insurance. \end{aligned} prospective buyers who respond to newspaper ads are likely to buy a property other than the property advertised. Real Estate Practice - Chapter Two; Ethics, F, Real Estate Practice - Chapter Three; Mandato, Real Estate Practice - Chapter Four; Prospect, Real Estate Practice - Chapter 5; Listing Pre, Real Estate Finance - Chapter Fifteen; Mathem, Real Estate Finance - Chapter Fourteen; Inves, Real Estate Finance - Chapter Thirteen; Loan, Alexander Holmes, Barbara Illowsky, Susan Dean, David R. Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. Williams, Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal. none of these. The local association may forward the application to the Texas REALTORS Legal Review Committee recommending that the application be approved, or it may deny the application and return it to the applicant. address from the occupants name. the average time from listing to sale for your firm is 42 days less than the average sale in your MLS. Advertising one property brings in buyers for other properties. occupants name from the address. a warning as to balloon payments. What about programs that offer to pay a real estate agent for names of potential borrowers? mproved efficiency You should check the do-not-call list before soliciting such listings to avoid violating the law. 6 the purpose of a broker providing a sliding - Course Hero Under the accrual basis of accounting, you should record an expense and an offsetting liability for a commission in the same period as you record the sale generated by the salesperson, and when you can calculate the amount of the commission. In addition to the Civil Rights Act of 1968.page 77, The California Act that prohibits discrimination by all California businesses is the. All are protected by 1988 Amendment.page 73, Advertising a home in an area occupied solely by members of a minority group only in newspapers directed toward that minority group would be regarded as. Index plus margin equal interest charged.Page 539, Loans that meet the underwriting standards of Fannie Mae or Freddie Mac are known as. The statement, The price seems a little high. All of these A reluctance to leave a property An inquiry as to when possession would be possible, These are words or actions indicating an interest.Page 437-438, An example of an open-ended question would be, Do you like this house? What do you like about this neighborhood? Is there any more information you would like? Can you afford a $1,500 house payment?, What do you like about this neighborhood?, You want an explanation, not yes or no answers.Page 428, For effective communication it is BEST to. These are all good pieces of advice.Page 415-416. the total dollar costs to take possession. the factor that makes a neighborhood cohesive. both buyer and seller must agree to amend the escrow instructions. (Page 397), When a caller wont give a name, the best approach would be to, hang up. How can I help make clear to the IRS that my agents are independent contractors, not employees? blanket loan. applies to 1 to 4 residential units. to disclosures to principals only. It should not matter. Your answer is correct. conversion. Finally, many of the promotional materials claim their compensation programs have received HUD "approval." wait to show the property until the other agent has left. properties that set the neighborhood value. In real estate, the term farming refers to. present the firms offer first and, if rejected, then present the other offer(s). ground lease. prospecting your farm area on a continuous basis. first month of the second listing extension. both a counteroffer really rejects the offer and once rejected, an offer cannot be accepted. appreciation. risk. (Page 294), In describing sales successes, it would NOT be advantageous to point out that. One of the requirements for a real estate salesperson to be regarded as an independent contractor by the IRS is that the, d.) (broker-salesperson contract states that the salesperson shall be treated as an independent contractor for tax purposes. the most desirable feature. the offer itself. The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to motivate salespeople and retain top producers Using time-management to increase income, you should realize that doubling "A" time activities should double your income. the straight-line method. If the agent advertises the APR, the agent must include all credit terms. After careful review, the board of directors chose not to file the requested briefs. Which of the following statements regarding the time it takes for a property to sell is TRUE? motivate salespeople. Either Open or Exclusive agency Exclusive agency Exclusive right-to-sell Open, A commission paid only if agent makes sale.Page 264-272. an accredited property manager. avoid seller disclosures. Section 535.2 - Broker Responsibility, 22 Tex. Admin. Code - Casetext Brokerage Liability Issues - Texas REALTORS It is primarily reserved for paying the legal expenses of cases that are significant to Texas REALTORS as a class or the real estate industry. This exception does not apply if the owner has asked your company to place his number on the company do-not-call list. possible periodic increases. One who has children. Agency representation Listing Commission Cost, Listing has a connotation of paying a commission.Page 287-288. If the price quoted is too high, you can be sure the caller will let the agent know. settlement sheet issued on closing a transaction. Which of the following is NOT a legal notice? ), Using time-management to increase income, you should realize that, b.) For copies of the procedures or applications, contact the Legal Affairs Department. For example, litigants in one case involving antitrust issues asked the association to file briefs with the court. Protects landlord against a poor operator.Page 677, A lease stipulating that the tenant pays a fixed monthly rental and the landlord pays all other property expenses would be a. gross lease. is merely an offer to insure. The caller may want a lower-priced property. The earthquake safety disclosure statement. advertise in designated areas. deductibility of taxes. neither 39 years for the property life nor the straight-line method. (b) workers compensation. Even if it is for just a few months.Page 675, A property manager who lives on the property and is employed by the owner, would be. Even if I do not perform the requisite number of functions to be considered a mortgage broker or do not become a true part-time employee of the lender, can I still be paid something for the work I perform for the lender? It was more important than it is now, because consumer products were less sophisticated. The firm's approximate desk cost is 19500.0 A licensed sales associate has employed an unlicensed personal assistant. p. 17 9. both a counteroffer really rejects the offer and once rejected, an offer cannot be accepted. Any legal or other information found on this page or at other sites to which we link, should be verified before it is relied upon. because you concentrate on a small number of select properties, you are able to give more individual attention to the property. A Transfer Disclosure Statement must be provided to the buyer when the sale involves. report violations of the real estate law to the Bureau of Real Estate. using one period of time to list and another period of time to sell in a never-ending cycle. While HUD may provide general guidance, the department does not approve individual business plans, and generally does not opine as to what amounts constitute fair and reasonable compensation. waive their rights to arbitrate. A commission is a fee that a business pays to a salesperson in exchange for his or her services in either facilitating, supervising, or completing a sale. the down payment divided by the purchase price. Properties listed above market value tend to sell faster than properties listed at prices closer to market value. Are there any risks I should be aware of before agreeing to this? unsolicited fax messages. Texas REALTORS provides content through various online platforms, including this blog. firsts. net lease. Records that include the independent contractor agreement and annual statements of understanding would provide persuasive evidence about the nature of the relationship between the parties. why the owners should deal with your firm. There are many lawsuits in which a Texas REALTOR may be involved that are not significant to Texas REALTORS or the real estate industry as a whole. CA Real Estate Practice Flashcards Preview - Brainscape institutions within an area that influence behavior. Thus, the reversing entry is: On the 15th of the month, ABC pays Mr. Smith his commission and records this entry. (Once set, goals should never be changed. Proposition 90 Proposition 58 Proposition 13 Proposition 60, Must cost the same, or less, than the home sold.Page 616, Tax benefits of a principal residence include all of the following EXCEPT. Unruh Act. Prohibited by Civil Rights Act of 1968 and the Holden Act.page 71. steering. Which of the following is NOT an institutional lender? appearing confident. all of these. does none of these. (d) all of these. you will work just as hard as the large firm. As an indication of value, which of the following would BEST indicate the market value of a home? None of these. A number of statutory elements must be satisfied by the consumer before he can file a claim for payment out of the recovery fund, including first obtaining a judgment against the broker or salesman that is not satisfied. Fred Smith sells a $1,000 widget for ABC International. Which of the following statements is TRUE? An unhappy seller could mean a sale that does not close. an estate for years. At the time of the purchase, flood maps for the area showed the property not to lie in a flood hazard area. they want to quickly locate property that meets their needs. as expensive a car as possible to impress others. Download a PDF of the Model Privacy Policy just for Texas REALTORS from theManuals & Guides page. exclusive agency listing. they adjust the price to the current market. both a debit on the buyers closing statement and a credit on the sellers closing statement. Instructions to an owner upon taking a listing should include all EXCEPT. (Page 383). locating prospective buyers. a former owner had AIDS. stay in close communication with clients or customers. The payment of any . credit terms. obtaining listings from visitors. Buyers are attracted to bargains, not overpriced property. ask, interact, demonstrate, approve. The independent contractor agreement formally defines the obligations and rights of a broker and an agent and outlines provisions that make it clear the agent is not an employee. rights of parties in possession. The sublessee is a tenant of the original lessee. Avoid wasting time and prioritize time. ask leading questions. Harry has some buyers that he believes are ready to make an offer. both you must mention this to a prospective buyer and failure to mention the presence of the group would make you liable for any damages the buyer suffered. An exclusive listing without a termination date, Must have a definite termination date.Page 266. show unoccupied property first to give owner-occupants a chance to prepare for the showing. You should consult an attorney regarding the risks involved and how to protect yourself from liability before agreeing to this situation. Requirements for a valid 1031 exchange include. recommend to the owner to accept it. The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to motivate salespeople and retain top producers The following statements are all examples of abstract goals I will improve my communication skills. that the exchange property must be of like-kind. Persons who are not members of the REALTOR organization have asked TAR to file amicus briefs in cases in which no REALTOR is involved. Case 2: The association filed an amicus brief in an Austin case in which a savings and loan association filed suit against the attorney general of Texas, arguing that federal regulations preempted the Texas Constitution regarding its homestead protection. Defraying all or a portion of legal expenses for pending litigation in which a member is a party 4. is satisfied with the general appearance of the home. Reg. a sports car to show you are a modern person. staying with a prospect until you have a contract. REALTOR membership is a criterion that a broker may voluntarily choose to require of independent contractors. an estate for years. a counteroffer really rejects the offer. both 39 years for the property life and the straight-line method. downpayment. Cost of sales is 45% of the gross commissions. a recapture clause. an estate. This is a debit to the commission expense account and a credit to a commission liability account (which is usually classified as a short-term liability, except for cases where you expect to pay the commission in more than one year). Every six months, the Texas REALTORS Legal Review Committee reviews applications and requests for funding from the Legal Fund from Texas REALTORS and litigants involving cases that significantly affect the entire real estate industry. For injuries. 6% of $189,500 = $11,370. d. all of the above 4. an estate at will. (Page 369), In advertising, the real estate agent should know that it is illegal to. (page 14-15), Using time-management to increase income, you should realize that. She has a signed liquidated damages clause. The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to both motivate salespeople and retain top producers For example, it would be a RESPA violation if you received a fee for every click that resulted in an application or closed loan. Which of the following is an example of a tie-down? Things such as car signs, business cards, and client referrals could lead a buyer to believe that your agent was acting as a real estate salesperson while working for the builder. (Page 277), By initialing the dispute resolution clause in the exclusive right-to-sell listing the seller and broker agree to. misrepresentation. both let the buyer know the price so they can consider it before the agent arrives and arrange to have all owners present for the presentation. a model home. brokers have liability to commission salespeople as to The following statements are all examples of abstract goals EXCEPT: d.) (I will obtain three new listings each month. before the buyer executes an offer. always selling a new home to the seller. A lease that needs no notice for termination, would be. And the company must promote its services during the event to qualify for the Real Estate Settlement Procedures Act (RESPA) advertising exemption. commercial property. Disclosure of AIDS is never required. (Page 584), A standard policy of title insurance protects the purchaser from all EXCEPT. Question 4 1 / 1 pts The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to. Secondary financing refers to the resale of existing loans. A release from time pressures Yes, as long as you follow the rules set out in the Real Estate Settlement Procedures Act (RESPA). participation loans. the exchange property must be identified within 45 days. Holden Act. combination of percentage of the gross and minimum fee. Which of the following statements regarding the use of goal-setting is FALSE? Rumford Act. Liquidated damages cannot result from buyer default. Defraying legal expenses for cases in which the association intervenes or files briefs as a friend of the court 5. Must sell owner on a listing and on you and your firm.Page 231-232, 243, A comparative market analysis would be LEAST valuable in indicating market value for a. vacant lot. all of these. Primary financing refers to loans made directly by the lender to the borrower. all of these. One of the agents I sponsor wants to also work part time selling homes for a local home builder. mentioning a potential objection before the customer does. First-time visits to new listings by groups of agents are commonly known as. However, the fund has been used to pay for expenses in filing briefs in cases involving homestead issues (as discussed above), contractual issues and other issues. doubling A time activities should double your income. occupancy. Monitoring and participating in the actions of governmental agencies 6. recommend to the owner to counter the offer. (Page 397). lack of capacity of a grantor. the total monthly housing payment divided by the gross monthly income. Attracts attention and is easy to read.Page 357. attention, interest, demand, action. every residential listing. There is a formal application and certification that an applicant, or his attorney, must complete. decreased by listing above the market value. Case 3: A REALTOR was sued by a buyer alleging that the agent did not disclose that the property lay in a flood-prone area or that the property had previously flooded. a particular subdivision. With a constant stream of prospects.page 207, A major reason owners attempt to sell without an agent is to. retain top producers . No. The association needs you to volunteer your voice and exper. The application is submitted to the applicants local association for review. provides insurance coverage until the title insurance policy is issued. Flyer pointing out attractive features about a property. Turn perceived negative into a positive. Brokers have liability to commission salespeople as to a. unemployment insurance. (doubling "A" time activities should double your income.). arrange to have all owners present for the presentation. a full-sized, four-door car for easy entrance and exit. Which of the following statements regarding mobile home sales is TRUE? taxes based on a persons ability to pay. ad within a price range or area creates prospects for other homes in the price range or area. neither motivate salespeople nor retain top producers.